As Texas attorney general, Ken Paxton joined a Kansas-led lawsuit in 2024 seeking to halt the SAVE repayment plan, under which millions of borrowers paid $0 a month. The plan was blocked in court, later struck down by a federal court, and in December 2025 the Education Department reached a settlement to end it.
In July 2025 Paxton praised the One Big Beautiful Bill Act, which moves borrowers into a new Repayment Assistance Plan that the Center for American Progress estimates will raise payments for Texas borrowers leaving SAVE by $2,159 a year on average. The law also ends Grad PLUS loans for new graduate students and caps what parents can borrow.
Ken Paxton's Lawsuit and Statements on Student Loans
- Paxton Joined the 2024 Lawsuit to Halt the SAVE Repayment Plan. In 2024, Ken Paxton's office joined a Kansas-led lawsuit that sought to halt the SAVE plan immediately, arguing that the Education Department had no authority to change student loan repayment plans; the attorneys general of Texas and nine other states joined Kansas. At the time 7.5 million borrowers were enrolled in SAVE, and 4.3 million of them had a $0 monthly payment. SAVE, which had been challenged by a collection of Republican states, was put on hold in the summer of 2024 when a court blocked it and was later struck down by a federal court. Interest began accruing on August 1, 2025 for nearly 8 million SAVE borrowers, and in December 2025 the Education Department reached a proposed settlement with Missouri to end the plan.
- Paxton Praised the Law That Raises Payments for Texas Borrowers Leaving SAVE by $2,159 a Year. Ken Paxton posted on July 1, 2025 that the Senate-passed bill was "One step closer to massive tax cuts," and on July 3, 2025 that "President Trump's Big Beautiful Bill is HISTORIC legislation." The law creates a Repayment Assistance Plan for new loans from July 1, 2026 and requires borrowers in SAVE and other older income-driven plans to move before July 1, 2028. The Center for American Progress estimates that moving from SAVE to the new plan will increase student loan bills by $2,159 a year on average for Texas borrowers. Under its example, a single borrower earning $35,000 per year in 2026 would have had $0 payments under SAVE but will owe $88 per month under the new plan. The Institute for College Access and Success says the plan will require payments from even those earning far below the poverty level and extends the maximum repayment term to 30 years.
- The Law Paxton Praised Ended Grad PLUS Loans for New Graduate Students in July 2026. The law Ken Paxton praised ended Grad PLUS loans for new graduate and professional students from July 1, 2026 and capped their federal borrowing at $20,500 a year for graduate students and $50,000 for professional students. The Center for American Progress found the new limits will create financing gaps for 13 percent of master's degree borrowers and 46 percent of professional degree borrowers, forcing many borrowers to turn to more expensive private loans and cutting off access for others altogether.
- The Law Paxton Praised Capped Parent PLUS Loans at $20,000 a Year. The law Ken Paxton praised limits Parent PLUS borrowing for loans from July 1, 2026 to $20,000 per student per year, with a $65,000 per student total cap. New America says the caps will likely push some families into the private market, and the Center for American Progress notes that Parent PLUS loans that originated on or after July 1, 2026 will no longer be eligible for an income-driven repayment pathway.
- The Law Paxton Praised Will End Unemployment Deferments and Delays Protections for Defrauded Students Until 2035. The law Ken Paxton praised ends unemployment and economic-hardship deferments for loans made on or after July 1, 2027 and caps forbearance at nine months in any 24-month period; it also delays the rules on borrower defense to repayment and closed schools. The Hechinger Report notes that economic and unemployment-related deferments will be eliminated and long-term forbearances will be capped, so a borrower who loses a job will have fewer ways to pause payments. The Center for American Progress says the law will delay the implementation of two key consumer protection regulations until 2035, for students misled by their colleges or whose schools closed.
What the SAVE Lawsuit and the Law Ken Paxton Praised Mean for Texas Borrowers
- Texas borrowers. Texas had 3,949,800 federal student loan borrowers owing $138.3 billion as of March 31, 2026, according to Federal Student Aid.
Frequently Asked Questions About Ken Paxton on Student debt
What is Ken Paxton's record on student debt under Trump?
Ken Paxton joined the 2024 Republican state lawsuit to halt the SAVE repayment plan, which was later struck down and is being ended. He praised the One Big Beautiful Bill Act, which replaces SAVE with a costlier repayment plan, ends Grad PLUS loans and caps Parent PLUS loans. The law will also end unemployment deferments for new loans from July 2027.
Did Ken Paxton sue to end the SAVE student loan plan?
Yes. Ken Paxton's office was one of ten state attorney general offices that joined Kansas's 2024 lawsuit to halt the SAVE plan immediately. Kansas Attorney General Kris Kobach said the coalition of Republican attorneys general would "stand in the gap" against the plan.
How much more will Texas borrowers pay after SAVE ends?
Under the repayment plan created by the law Ken Paxton praised, the Center for American Progress estimates that Texas borrowers moving from SAVE will pay $1,796 more a year if they have some college or an associate degree, $2,472 more with a bachelor's degree, and $2,385 more with a graduate degree. Nationally the average increase ranges from $1,428 in Kentucky to $2,981 in Maryland.
Can graduate students still get Grad PLUS loans?
Under the One Big Beautiful Bill Act that Ken Paxton praised, new graduate students will no longer be able to take out Graduate PLUS loans for periods beginning on or after July 1, 2026. Students already enrolled before then keep access for up to three years.
Last updated: 2026-10-25